It’s no secret that aggressive mortgage banking firms are recruiting top executives and loan officers away from other firms. One of the busiest recruiters that we know of its Mortgage Master of Walpole, MA.
A new poll on the Inside Mortgage Finance website tells the story: Just 24 percent of respondents want Fannie Mae and Freddie Mac taken out to the Jersey Meadowlands by Luca Brasi. (Leave the gun, take the cannolis.)
Construction-to-permanent loans are picking up a head of steam in certain markets. “Down here [in Florida] it’s extremely hot,” said Joe Adamaitis, vice president and residential lending manager for Insignia Bank.
Despite the not-so-good news on applications, one warehouse lender suggested to IMFnews that larger lenders are suffering much more than smaller firms.
Over the past few years Envoy Mortgage had a strong emphasis on purchase-money lending and in early 2013 branched out into third-party lending. Its original focus was on retail.
Here’s what the current state of mortgage banking boils down to: Can the industry survive on $1 trillion to $1.2 trillion in production a year through 2015?
A significant number of independent mortgage bankers failed to turn a profit during the first quarter of 2014, but many firms are tightening their belts and hanging on, thanks to a strong market for mortgage-servicing rights. According to the Mortgage Bankers Association’s annual performance report due out late this week, mortgage bankers saw their net profit margin on production and secondary marketing slump to a negative 9 basis points, said MBA Chief Economist Mike Fratantoni. The number was preliminary, but it represents a huge decline since the gung-ho first half of 2013, when lenders generated about 120 bps in net income from production. Only about 55 percent of lenders participating in the survey, which is includes a large number of independent mortgage bankers, earned...
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